Petrobangla to make short list of LNG suppliers in int'l spot market

FE Team | Published: November 08, 2024 23:45:32

Petrobangla is going to make a fresh list of international spot market LNG supply companies through an open tender by next week.
"The tender is ready for circulation in the media and hopefully the notice will be published in the first half of the next week", Petrobangla Chairman Zanendra Nath Sarker told UNB.
He noted that this time an open tender would be floated to make a fresh list of the LNG suppliers through a transparent process.
Bangladesh has been importing liquefied natural gas (LNG) from the international spot market since 2019 to meet its growing gas demands.
To ensure a smooth supply, as per instruction of the Energy and Mineral Resources Division, the Petrobangla and its LNG handling subsidiary Rupantarita Prakritik Gas Company Limited (RPGCL) invited expressions of interest from the international companies to list them.
Initially, 17 companies were listed on the basis of the Speedy Increase of Power and Energy Supply Act 2010 and then 5 more companies were added to the list.
Through these companies, Petrobangla has been importing the LNG from the international spot market. But every time, it was seen that again and again a number of certain companies were getting contracts and dominating the business.
These companies include Vitol Asia of Singapore, TotalEnergies of Switzerland, Excelerate Energy of USA, and Gunvor Singapore.
Of these, there are allegations; some of the companies had business interests with former ministers and state ministers of the fallen Awami League government and also some local business groups.
After the fall of the Awami League government, when the interim government assumed office, it decided to suspend the Speedy Increase of Power and Energy Supply Act 2010 and instead import the LNG from the spot market under the Public Procurement Rule 2008.
It also decided to scrap the list of the companies soon to bring transparency in the bulk import of LNG as the government has to spend more than a billion dollars to import the LNG.
As part of the decision, finally the Petrobangla moves to prepare a fresh list of the interested companies through an open and transparent process.
"We have decided once the new list of the companies is prepared, we will cancel the previous list of the 23 companies", said the Petrobangla.
Energy industry insiders said that the new move will encourage more reputed international companies to supply LNG to Bangladesh from the international spot market. "This will also facilitate to get LNG at a much lower rate which will ultimately reduce the energy cost of the government", said an energy expert wishing anonymity.
Bangladesh has been experiencing huge gas crisis as it produces 3100 MMCFD Gas per day against a demand of about 4000 MMCFD.
Of the total production of 3100 MMCFD, some 1100 MMCFD gas is being imported from abroad of which 150-200 MMCFD gas is imported from the spot market while remaining is imported from Qatar and Oman under long term contract.